US International Development Finance Corp supports Brazilian Nickel with US$550m loan for Piauí project
The US International Development Finance Corporation (DFC) has issued a letter of interest to Brazilian Nickel (BRN) for a loan of up to US$550 million as part of an overall financing package for the Piauí nickel project in Brazil.
Such a loan facility would represent almost 40% of the project’s overall financing package.
BRN has attracted US interest for its use of state-of-the-art technology to develop a mine that may provide critical battery metals to the Americas.
Critical mineral development
“The Piauí project represents an opportunity to advance critical mineral development in Brazil, diversify critical supply chains and foster economic growth in the region,” DFC acting vice president of infrastructure and critical minerals Danielle Montgomery said.
“DFC is committed to advancing the global energy transition by supporting world-class projects that drive economic development and growth while advancing US strategic interests in the region.”
BRN’s senior debt funding strategy has been to target a syndicate of lenders largely consisting of government-backed institutions, led by DFC.
The lenders are in advanced stages of their due diligence and have recently completed a site visit to the project in Brazil.
Lower cost burden
The advanced-staged nickel laterite project has been developed through the successful application of heap leaching technology to nickel laterite orebodies.
This is a materially less capital-intensive process than traditional high-pressure acid leaching (HPAL).
BRN chief executive officer Mark Travers said the use of heap leaching technology permits the exploitation of resources that cannot support the much higher capital burden of HPAL, giving BRN a competitive advantage.
“We are grateful for the incredible support we have received from DFC throughout this process and we are excited to continue our collaboration [..] into a committed financing facility in early 2025,” Mr Travers said.
“It is a clear indication of the potential value of this project to Brazil, the US and the world.”
Potential EV supplier
With an average production rate of 27,000 tonnes per annum of nickel and 900tpa of cobalt across the first ten years of operation, the mine is on track to become a globally significant supplier for the developing electric vehicle (EV) supply chain.
The project was recently awarded the “Nickel Mark” in recognition of its environmentally and socially responsible practices.
This recognition underscores the demand for a low-cost premium product alternative with strong ESG credentials.